New Media Internet Enterprise Value Evaluation Research Based On Income Method

With the deepening of the Internet in all areas of our lives and the constant innovation and development of Internet companies,many new industries and new fields have emerged.Moreover,our country's traditional industries continue to undergo transformation and upgrading under the leadership and influence of the Internet.The gradual deepening of the Internet has injected new impetus into China's economic development.Different from the traditional heavy asset enterprises,the emerging Internet companies have their own unique characteristics.Because Internet companies need to seize the market to obtain customer resources in the earlier period,their early investment is relatively large,the promotion cost is high,and the payback period is long and unstable.At the present stage,there are often great differences in the results of using different methods to evaluate the value of Internet companies.There are certain drawbacks in using traditional methods to assess.This article aims to target the Internet companies in the new media category.Starting from the method of evaluation,starting from the problem of discount rate selection in the income approach,this paper analyzes and analyzes the drawbacks of current discount rate selection methods.Analyze the impact of customer resources and market share of Internet companies on the future free cash flow of the company.To find a method for calculating the discount rate that is more suitable for the characteristics of Internet companies,and to improve the measurement method of discount rate based on the income method.Select a representative case to analyze the characteristics of the selected case and the industry characteristics of the selected case and analyze the factors affecting the future cash flow.Concluded as follow,regarding user resources as a bridge for predicting the future free cash flow of new media Internet companies,it is possible to avoid problems that cannot be predicted due to the negative free cash flow of Internet companies in the previous period.Using the historical return on equity of the target company to predict the return on investment required by the holder in the future operating period can avoid the selection of the beta coefficient when using the CAPM model,and also avoids that the market does not meet the capital asset pricing model.